Rockwool A/S Class A · OMXCOP:ROCK_A

Rockwool A/S Class A — ROCKWOOL International — Q3 2014 Earnings Presentation

24 slides from Rockwool A/S Class A's earnings presentation, Nov 21, 2014

  1. Slide 1: 2014 Q3 results

    2014 Q3 results Copenhagen 21 November 2014 CFO Gilles Maria

  2. Slide 2: Forward-looking statement

    2014 Q3 results - 21 November 2014 Forward-looking statement The statements on the future in this presentation, including expected sales and earnings, are associated with risks and uncertainties and may be affected by factors influencing the activities of the Group, e.g. the global economic environm

  3. Slide 3: Highlights Q3

    2014 Q3 results - 21 November 2014 Highlights Q3  Continued growth with sales in the first three quarters up 11% (6% like- for-like).  Western European market recovery more and more questionable – like- for-like sales in Q3 down 3%.  Russian business solid but major negative effect from exchange

  4. Slide 4: Net sales Q1-Q3 2014

    2014 Q3 results - 21 November 2014 Net sales Q1-Q3 2014 Sales were up 6% in the first 9 months of 2014 on a like-for-like basis (comparable structure and exchange rates). 2000 1800 1,613.3 1600 1,333.0 1,442.1 1,447.3 EUR million 1400 1200 1,073.5 1,138.0 1000 800 600 400 17% 11% 200 6% 8% 0% 0 -200

  5. Slide 5: Overview of exchange rate and acquisition effects for Q1-Q3 2014

    2014 Q3 results - 21 November 2014 Overview of exchange rate and acquisition effects for Q1-Q3 2014 Actual Exchange Acquisition Like-for- % growth rate effect effect like growth Net sales 11.4% -3.7% 9.1% 6.1% EBITDA 7.3% -4.5% 4.3% 7.5% EBIT 7.1% -5.1% 1.6% 10.5% Geographical segments: Western Euro

  6. Slide 6: Western Europe

    2014 Q3 results - 21 November 2014 Western Europe (58% of Q1-3 sales)  Overall, construction markets have proven more troubled than expected.  Good trends in UK and Scandinavia.  German market disappointing in Q3 and did not show expected pick-up.  Vivid debate in Germany on safety of facade ins

  7. Slide 7: Eastern Europe & Russia

    2014 Q3 results - 21 November 2014 Eastern Europe & Russia (23% of Q1-3 sales)  Sales grew by 19% like-for-like in Q1-3 but strong negative currency effect.  Russia is levelling off and rouble devaluation weights on top- and bottom line.  Polish market still strong, also helped by tightened build

  8. Slide 8: North America

    2014 Q3 results - 21 November 2014 North America (Together with Asia and rest of the world 19% of Q1-3 sales)  Sales continue to post double-digit growth rates on the back of a recovering construction market.  Sales progress in all major segments: DIY, flat roof and Technical insulation.  New US

  9. Slide 9: North America, Asia and Rest of the World (continued)

    2014 Q3 results - 21 November 2014 North America, Asia and Rest of the World (continued)  Sales in Southeast Asia and China show stable development.  Middle Eastern and Turkish business still growing sales thanks to increasing energy efficiency and fire safety focus.  Indian business impacted by

  10. Slide 10: Systems Division

    2014 Q3 results - 21 November 2014 Systems Division  Solid performance with sales up 40 % (9% like-for-like) benefitting from CMC acquisition and good business performance in general.  Ceiling business posted high single-digit organic growth rates- steep increase in ceiling tiles sales in North Am

  11. Slide 11: EBITDA Q1-Q3 2014

    2014 Q3 results - 21 November 2014 EBITDA Q1-Q3 2014 EBITDA was up 8% in the first 3 quarters of 2014 on a like-for-like basis (comparable structure and exchange rates), as the impact of the acquisitions was 4% and the exchange rate was minus 5%. 300 250 243.0 220.7 226.5 200 EUR million 178.0 176.5

  12. Slide 12: EBIT Q1-Q3 2014

    2014 Q3 results - 21 November 2014 EBIT Q1-Q3 2014 EBIT were up 10% in the first 3 quarters of 2014 on a like-for-like basis (comparable structure and exchange rates), as the exchange rate impact was minus 5%. 150 118.8 127.2 125 109.4 100 EUR million 82.3 77.1 75 45.7 50 80% 25 42% 9% 7% 0 -6% -25

  13. Slide 13: EBIT Q1-Q3 2014 per business segment

    2014 Q3 results - 21 November 2014 EBIT Q1-Q3 2014 per business segment 100 81.1 84.1 86.0 80 80.4 60 EUR million 54.0 48.0 34.8 34.7 44.7 40 46.8 28.3 29.1 28.3 20 10.9 0 -20 2009 2010 2011 2012 2013 2014 -40 Insulation Segment Systems Segment Like-for-like (same structure and exchange rate) 13

  14. Slide 14: Financial items Q1-Q3 2014

    2014 Q3 results - 21 November 2014 Financial items Q1-Q3 2014 1 0 -1 EUR million -2 -3 -3.2 -4 -5 -4.9 -5.3 -6 -5.1 -5.9 -6.3 -7 -8 2009 2010 2011 2012 2013 2014 14

  15. Slide 15: Profit for the period Q1-Q3 2014

    2014 Q3 results - 21 November 2014 Profit for the period Q1-Q3 2014 100 87.9 90 80.7 80 72.2 EUR million 70 60 50.5 50.0 50 40 30 27.1 20 10 0 2009 2010 2011 2012 2013 2014 15

  16. Slide 16: Change in working capital Q1-Q3 2014

    2014 Q3 results - 21 November 2014 Change in working capital Q1-Q3 2014 100 80 60.3 60 EUR million 40 20 0 -20 -13.5 -22.8 -22.2 -40 -44.0 -60 -61.0 -80 -100 2009 2010 2011 2012 2013 2014 16

  17. Slide 17: Stock end of Q3 2014

    2014 Q3 results - 21 November 2014 Stock end of Q3 2014 198.8 200 15.2 180 175.6 170.3 161.7 160 148.2 EUR million 140 91.1 124.7 118.1 120 90.2 92.8 84.9 68.1 75.7 100 56.2 80 60 85.4 86.0 92.5 40 80.1 77.5 61.9 20 39.8 0 2009 2010 2011 2012 2013 2013 YE 2014 Finished goods Raw material and consuma

  18. Slide 18: Debtors end of Q3 2014

    2014 Q3 results - 21 November 2014 Debtors end of Q3 2014 300 258.0 250 228.7 227.8 25.0 209.8 211.1 EUR million 202.8 200 188.3 10.4 150 233.0 100 200.7 50 0 2009 2010 2011 2012 2013 2013YE 2014 18

  19. Slide 19: Cash flow from Q1-Q3 2014

    2014 Q3 results - 21 November 2014 Cash flow from Q1-Q3 2014 200 167.9 167.2 142.0 146.6 150 126.0 118.0 EUR million 100 70.3 50 31.0 14.4 3.6 -41.6 -63.3 0 2009 2010 2011 2012 2013 2014 -50 -100 Cash flow from operating activities Free cash flow 19

  20. Slide 20: Investments and acquisitions Q1-Q3 2014

    2014 Q3 results - 21 November 2014 Investments and acquisitions Q1-Q3 2014 209.9 200 183.6 25.4 180 160 EUR million 133.6 58.9 140 5.0 121.2 120 127.0 101.8 13.6 93.8 100 80 74.9 71.1 47.4 60.9 42.4 60 40 31.0 51.4 53.6 57.5 46.7 20 53.7 23.4 0 2009 2010 2011 2012 2013 2014 Maintenance CAPEX Capacit

  21. Slide 21: Expectations

    2014 Q3 results - 21 November 2014 Expectations  The Group re-confirms its expectations for 2014 net sales at comparable exchange rates to increase by 12% compared to last year and by 5% like-for-like.  The Group now expects net profit to be in the range of EUR 110-120 million whereas the previous

  22. Slide 22: Unplanned events explaining the outlook

    2014 Q3 results - 21 November 2014 Unplanned events explaining the outlook  Core business performance is reasonable in the current market situation. 2014 Group EBIT is negatively affected by following items of around EUR 20 million:  Discontinuation of the green field factory in China including sa

  23. Slide 23: Investments and acquisitions full year

    2014 Q3 results - 21 November 2014 Investments and acquisitions full year 300 265.3 255.4 250 25.4 83.9 192.1 200 EUR million 161.4 162.6 150 4.2 13.5 150.0 133.8 98.8 98.4 109.8 140.0 85.1 109.6 100 84.3 82.8 82.9 63.6 63.4 42.7 80.0 50 41.6 83.0 70.2 72.1 66.3 39.6 0 2009 2010 2011 2012 2013 2014

  24. Slide 24: Questions?

    ROCKWOOL FIRESAFE INSULATION aoe Saas GO N Questions? | a oe oe | wea. ep. Be CREATE AND PROTECT®

ROCKWOOL International — Q3 2014 Earnings Presentation on 6ix